Subsidizing Violence: U.S. Tax Exemption for Settlement Expansion in the Occupied Palestinian Territory

Introduction
Since June 2014, more than 1000 settler attacks have been carried out against Palestinians in the West Bank (Figure 1). The expansion of the illegal settlement enterprise is inseparable from the rising intensity of settler violence against Palestinian communities across the Occupied Palestinian Territory (OPT) and remains increasingly concerning following the arson attack that killed three members of the Dawabsheh family – including an 18 month old child – in the Nablus region of the West Bank in July 2015. Although the United States condemns the illegal expansion of settlements in the OPT, their military aid to Israel – now standing at $3 billion a year – provides the foundation for Israel’s indifference to international condemnation.

Additionally, there continues to exist 501(c)(3) registered organizations in the United States that act as financial intermediaries for Israeli-based nonprofits who actively support and promote illegal settlement expansion.